You must work and learn a profession before you start getting money for it, so even in this case, the money doesn’t come easily – we know this. You’re already lucky if at least you like your job, otherwise forget it, it’s torture! Even those who practice the oldest job in the world must often bear the unbearable, in order to earn money and to have a comfortable life, whether that’s a man, a woman, or doesn’t identify with a gender.

Often while browsing the internet we find offers to make money online easily, by scamming others. It could seem easy, but it isn’t.

You, who are reading – yes, you right there – are likely wondering what you’d be willing or capable to do?! Good. Let’s see!

Not everyone is willing to invest time, precious free time, to learn something. The majority of us, when we are free, wants to relax. What about something that we’re not familiar with and that forces us to get out of our comfort zone? Never!

Analysing social lending and RE Crowdfunding

I had to invest in something profitable but with a reasonable risk, when some acquaintances of mine from London introduced me to P2P.

I then examined the available platforms

I sent out requests for assistance

I contacted old-time users

I enquired into financial advisors

I collected data, stats and information

To invest in social lending is not difficult, and it may be not risk free, especially if you don’t know how to do it.

It takes some of your precious time to set it up, a few minutes, then you can enjoy the revenue once and forever (…long time).

Ops, I forgot, you also need a starting capital and the will to invest long term.

Loans with less stars means less reliability and more credit risk. High interest loans have to be picked carefully. I have developed strategies to get the best P2P loans on many platforms.

As you can see also in this case (peer to peer lending and real estate online investments), returns are linked to the level of risk and also to the time you are willing to invest to make it to work for you.

Obviously, a higher interest rate is often associated with a higher risk. What we’ll try to do, is to then find the maximum return with the minimum risk. It is possible because I’m doing it, and I’ll tell you how to get it.

We’re not going to talk about predisposition and aversion to risk, as there have been written enough texts about it (which you should read). Everyone needs to be informed about the risk they face when they invest but, in my opinion, it is much better if, instead of waiting the information from others, we try to gather it on our own.

It isn’t impossible, and P2P lending (and also real estate crowdfunding) is one of those areas in which anyone can reach a sufficient knowledge to evaluate risk and convenience in relatively short times, especially if you can read English or if you read these posts. Common-sense will do the rest. The possible returns justify the effort to get informed, since in Euros, they go up to 15%, and in theory they even go beyond 25%.

The concept that P2P is based on, seems futuristic, but if we pause to think about it, it is actually something really simple and old.

In fact, before the invention of banks and financial companies, whoever needed a loan would go to the family and/or the villagers. He/she would explain to them why they needed the money, and then whoever wanted to would take part in the collection with the promise (or not) of a little or big interest on the capital, once the loan was repaid.

Zopa is the first p2p lending tool ever (2005). It is still working.

P2P lending as we know it now was created in 2005 in London with the Zopa platform, which is still now perfectly functioning. That was many years ago, so I’d say it’s a good sign.

Since then, with the explosion of fintech companies, that is to say, information technology applied to finance, the aggregators of loans have multiplied. Dozens of tools, more or less similar to Zopa, have been created, offering varying levels of risk, ethicality, and convenience. The Baltic countries are leading this revolution, and at the moment, they’re the ones offering transparent and fruitful channels in Euros. It is important to invest in Euros if I don’t want to be subject to the exchange risk, which can massively multiply or reduce our results.

Sometimes, these foreign finance companies, offer credit also to those who would not have access to traditional banks offer. In some case, guaranties in physical goods are requested (or not), which posits the doubt of the ethicality with which the credit is offered, in some countries, to some clients.

Obviously, there is also a good side of the coin, when credit is offered at lower rates than those of the banks, and when those who lend can select business projects in which to invest, and make a big difference. This is available also in the charity sector (see Kiva).

Kiva makes me feel good lending to people with great ideas but no money to start!

Property social lending in Europe

Moreover, there are systems to invest in properties, and to buy or rent portions of houses and office without getting … out of your house. An example of a platform to invest in properties in Europe, (but not very convenient, in my opinion) is Housers. They offer geographic diversification and they apply different legal systems to allow participating to the investment of public retail.

Housers is interesting but not liquid for now. Risk/reward is difficult to figure out.

Housers is interesting but not very liquid for now, and interests not high

For now, we will focus on investments that are easy to understand, where we will find more liquidity and even the possibility of ending up in gain, without being tied for decades.

For the first time in history, we can function as a bank, assimilating an estimated part of the risk while getting adequately repaid. Our duty now, is to get the most out of it, to generate an automatic income from it, lowering the risk involved to the minimum. P2P Lending practice is authorized by governments.

My goal?

A low maintenance automatic income

My goal is to produce a monthly automatic income, and I believe this is an unprecedented investment opportunity (in Euros, too).

Online investing is getting at reach of average people, it is more transparent then before, and automation (if wisely used) can be game-changing.

The biggest P2P players in Europe?

I already have an opinion on the biggest P2P platforms in Euros, one of these is Mintos (read why)! The others are Bondora and October! Amongst other similar products available in many languages, there is Grupeer. In English and other languages, we have Ratesetter, Founding Circle, Twino, Robocash.

Beware! Some British platforms are accessible only to the resident taxpayers, other American ones (Lending club, Prosper, Upstart) have the same limitation.

NOTE: The indications contained in this analysis are to be considered mere information tools and do not intend to constitute in any way financial advice, solicitation to the public savings, suggest or promote any form of investment.

NOTE: This is a personal blog on Financial independence and P2P lending.
Like everything I write about, I'm just sharing my ideas. You are solely responsible for your choices. The ideas, concepts and everything I write about, is simply my opinion based on what I have studied and very very often tried myself (my skin in the game). I am happy to answer questions and give help (not advice), but these answers are based only on what I would do on the limited information you have given me. I cannot and I don’t want to know the financial situation of my readers. This site and its communications do not provide all the information necessary to make an investment decision. All views are my own. I only talk about products, services and companies I like or use myself. I believe in transparency and trust. Some companies reported here may offer affiliate commissions, others don’t, but my opinion doesn’t change and this doesn’t prevent me to mention them.
I am not an investment advisor. None of the opinions and information in this email and on this site are to be considered as a solicitation for investment in Crowdfunding, P2P lending or any other security.
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